Recession fears cause havoc on world markets
Jitters began when Morgan Stanley warned the US and eurozone were 'hovering dangerously close to recession' and it wouldn't take much to tip the balance
By Nikhil Kumar and Stephen Foley in New York
Friday, 19 August 2011
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World markets collapsed last night, with investors bolting for cover on fears that the US and the eurozone were "dangerously close to recession".
More than £62bn was wiped off the blue chip FTSE 100 index, which slumped by 239.37 to 5092.23 – its worst one-day fall in points terms since November 2008. In percentage terms, the index endured its darkest session since March 2009. European shares fared no better, putting in their worst daily performance since the credit crunch as growth concerns supplemented existing worries about the eurozone's sovereign debt crisis.